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Today, homeowners numbered in the millions, find themselves in a position asking whether refinancing home mortgage or modifying it into one backed by the Government at a 2% fixed rate would be a wise decision.
 
These options are available as a result of the Bush/Obama stimulus "Making Home Affordable Plan". This program provides in excess of $75 Billion in taxpayer funds set aside to assist homeowners having a hard time handling their mortgage and keeping their home. Here are the details:

Mortgage lenders and banks will be incentivized with cash from the Government provided by tax payers to cover losses they might realize as a result of providing funds to at risk homeowners.
 
The hope is that people will be more responsible after seeing the mortgage meltdown these types of loans caused in the past. Just like previous programs that the Government instituted it will lower the bar to getting approved for refinancing home mortgage or getting a home mortgage modification making it easier than ever. Forget about having substantial equity in your home of 20% or more or cash on hand equal to that amount. Simply isn't needed for these program alternatives.
 
The idea is that doing this will increase tremendously the number of approvals for homeowners needing to refinance their home mortgage or modify it into a minimum 5 year ARM. Since the lending institutions are insured against catastrophic loss and would rather not deal with the pain associated with having to foreclose the consensus is that everyone will be happier and will work hard to ensure success.
 

Many homeowners are experiencing "Financial Hardships" stemming from job loss-medical bills or a ton of credit card debt and are looking at the possibility that losing their home is next. With this as the main focus, the Obama Administration feels that
 
"the stimulus package allowing homeowners facing financial difficulty to take advantage of refinancing home mortgage into a much more beneficial 2% fixed rate  is a good thing for everyone."
 
Taking advantage of this will mean thousands in savings due to lower interest and hundreds more in peoples pockets every month that can be used to pay off other debt or will be spent in the market place which hopefully will jumpstart the economy and start reversing the downward spiral America finds itself in right now.

Any homeowner with a home loan insured, backed or financed by Freddie Mac or Fannie Mae automatically qualify to be eligible for a home loan modification. The personal finances in this situation are not a consideration in this instance. Homeowners that take advantage of this will be able to reduce current mortgage payments, many in excess of 50-60 percent of their current household income to no more than 31% of their gross monthly income.
 

IN the end, the goal of this plan is to:
·         get the housing market stable
·         put billions of spendable cash into the economy via the millions of homeowner receiving the benefits of the plan.
·          Homeowners taking advantage of the plan will keep foreclosure from knocking at their door which is a poor alternative for everyone concerned.
·          Homeowners refinancing home mortgage or modifying home loans and keeping their homes should stimulate hope and confidence into the housing market and hopefully result in the value of homes starting to rise again at a sustainable rate.
 
Take advantage of this opportunity of  refinancing home mortgage now while it is available and start putting hundreds of dollars into your pocket immediately that you can use every month as you see fit.

David Spears is a Mortgage Professional helping homeowners in Virginia. When looking at refinancing home mortgage options or purchasing your first home using stimulus incentives make sure to take advantage of all of the free tools available at http://www.mortgageprova.com today!

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